Small business owner confidence hits new low, poll finds
More than half of U.S. business owners who took part in a survey released Wednesday believe the economy is already in a recession and more than three-quarters expect inflation to continue to rise. Photo by Ryan Hodnett/Wikimedia
August 3 (UPI) — Small business confidence has hit a new low, according to the results of a new survey released jointly by CNBC and Survey Monkey on Wednesday.
The third quarter survey found that 57% of small business owners believe the United States is already in a recession, while 14% believe the country’s economy will be in a recession by the end of this year.
Ever-increasing inflation was a major concern for business owners. Of those polled, 77% expect inflation to continue to rise, and only 26% are confident in the Federal Reserve’s ability to control inflation.
Inflation is the biggest risk to their business right now, according to 43% of respondents. This figure is up from 38% in the second quarter and represents a new record over the past year.
Among small business owners surveyed, 77% expect prices to continue to rise.
Republicans were more likely to have a negative view of the economy than Democrats, both among the general population and among small business owners.
A total of 69% of Republicans surveyed who own small businesses think the country is currently in a recession, compared to 34% among Democrats in the same position.
Among those polled, 68% of Republican small business owners describe the current state of the economy as “bad,” compared to 19% among Democrats of small business owners.
Hiring remains a challenge for many small business owners.
More than a quarter of respondents – 28% – say they have vacancies they have not been able to fill for at least three months, matching the previous three quarters.
Only 7% think it is easier to find employees now than a year ago, while 50% think the situation is more difficult.
The president of the Federal Reserve Bank of St. Louis said Wednesday that he expects interest rates to continue to climb, but thinks the United States can avoid entering a recession.
In late July, the Federal Reserve ordered another 0.75% interest rate hike amid growing pressure to control high inflation that is making essential items more expensive for Americans.
The online survey was conducted July 25-31, 2022 with a national sample of 2,557 self-identified small business owners aged 18 and older.